I am receiving many emails (responding to my prior missives) which lead me to the conclusion that many readers of my blog do not understand some basic principles of economics, money, history. I realize that economics and money are difficult subjects to fully understand. The voices within this profession are many and each voice tends to espouse a unique point-of-view. Maybe if I pose some questions and provide some new direct answers this will help with understanding. I hope the following questions and answers will help those seeking clarity and meaning:
1. What is the meaning of the concept which I call: ‘value’ for ‘value’? Answer: When Americans purchase goods from China we assume that these goods (let’s think of goods at Wal-mart) have a perceived ‘value’. This means that we should be providing China with an equivalent ‘value’ in terms of the currency which we give them (in exchange). China produces goods within their country and labor and intellect is ‘spent’ to produce these goods. So we assume that they desire payment in terms of something which is perceived as having equivalent ‘value’. This is economics 101. We receive ‘value’ and we then give equivalent ‘value’.
2. Is the American ‘dollar’ (now mostly a digital unit) a thing perceived to have ‘value’ (in the minds of foreigners)? Answer: A currency unit (like our cyber dollar) which is not defined in terms of some physical ‘thing’ (perceived to have ‘value’) is really NOTHING of substance (we can say that it is ‘valueless’). If I give you a currency symbol ($) and a number (1.00) for goods which you provide me (say items of food, clothing, technology, etc.) am I giving you some ‘thing’ of ‘value’? Is a symbol and a number (typed into the computer screen) and sent to your computer screen a ‘thing’ of ‘value’? I would say NO! A mere symbol/number is a mental abstraction (similar to an imaginary tooth fairy) and can not be viewed as a ‘thing’ of ‘value’. We need to focus directly on what is being exchanged for the products provided. Is the exchange a ‘value’ for ‘value’ exchange?
3. Is Gold (the metal/element derived from our earth) a ‘thing’ of ‘value’? Answer: Within economics and monetary history, the element that we call ‘gold’ has been chosen as money and has been perceived as being a ‘thing’ of ‘value’ (by most market participants). When we barter products in the marketplace, each party desires to exchange ‘value’ for ‘value’ when negotiating an exchange. Since ‘value’ is a subjective concept of our Mind, we invented a substitute (proxy) for this subjective concept called ‘value’. Gold was one commodity which served as an objective proxy for the subjective concept called ‘value’. Silver also was chosen (invented) as a proxy. For small transactions, copper was chosen. This means that gold (and silver) are elements which the marketplace has chosen as ‘things’ with a perceived ‘value’.
4. How did a ‘currency unit’ emerge from the greater marketplace? Answer: Within a barter marketplace people first choose some ‘thing’ (perceived to have ‘value’) as their money item (let’s say gold). Then to calculate or measure this subjective concept called ‘value’, we developed a ‘currency’ (a mental abstraction) which is ideal for ‘counting’ purposes. Americans developed the concept called ‘dollar’ as their currency unit. We then created the symbol ($) and the number (1.00) as a mathematical tool for our ‘valuations’ within the marketplace. To give this symbol/number ($1.00) meaning we DEFINED this mental abstraction in terms of the money item chosen (say gold/silver). For Americans we initially defined our ‘dollar’ (a mental abstraction) as 24.75 grains of the element called Gold and/or 371.25 grains of the element called silver. This gave our ‘dollar’ meaning and also perceived ‘value’. Can you discern how important this definition becomes when trading with foreigners?
5. Is the meaning of the word ‘money’ different from the word ‘currency’? Answer: Absolutely! The element called gold is initially chosen as our proxy for ‘value’. This is done within our greater barter marketplace. We then create the concept called a ‘currency’ to specify a specific weight or quantity of gold. This gives our currency (a mental abstraction) meaning (especially when we provide users of this currency the option of exchanging the currency unit, if desired, directly for the defined element…upon which the currency name is based). In other words, a currency unit like our ‘dollar’, takes on meaning when we can exchange this unit for either 24.75 grains of gold and/or 371.25 grains of silver (minted into a coin or coins). Without this definition and exchange option, the currency unit is merely a ‘mental abstraction’ (a valueless symbol/number/name). Think about our foreign counterparties who are supplying us our products at Wal-mart, etc.
6. Who took America off the gold standard…which had given our currency meaning and real ‘value’ for over 140 years? Answer: This was initially done in 1933-34 by Franklin D. Roosevelt. FDR called in all private gold bullion (owned by Americans) and then chose to force Americans to accept the Federal Reserve Notes (created by our centralized Federal Reserve Bank) as a substitute. This was done, with the hope that Americans would start spending and developing confidence in his New Deal policies. FDR felt that ownership of gold (for Americans) was not necessary to get our economy moving forward. FDR did, however, provide foreigners the option of converting their ‘dollars’ into our gold.
7. Who took America off the gold standard for our international exchanges of goods/services? Answer: This was done by Richard Milhous Nixon on August 15, 1971. RMN was advised by his Treasury Secretary and also by famed economist, Milton Friedman, that our gold supply (held at Fort Knox) was declining rapidly (due to foreign exchanges of our currency for gold)…based upon the agreements reached at the Bretton Woods Monetary Agreement of 1944-46. In 1944 America had some 740 million ounces of gold at Fort Knox, Kentucky. This supply was declining rapidly due do foreigners desiring to exchange their surplus ‘dollars’ for our gold (pursuant to this Bretton Woods Agreement). As of August 15, 1971, America’s gold supply (our ownership) had declined to some 272 million ounces (over 60% decline). A continuation of these exchanges of our paper currency for its backing (gold) would leave America with a currency of zero perceived ‘value’. Can you discern the problem?
8. How did America continue to create confidence in a ‘dollar’ which had no perceived ‘value’ after August 15, 1971? Answer: What happened is that our ‘dollar’ emerged as a valueless mental abstraction (after 1971) but Richard Milhous Nixon was able to convince Saudi Arabia (who controlled the global oil supply) to ‘price’ their oil in our ‘dollar’ and to force every foreign purchaser of this oil to convert their National currency into our American dollar prior to getting oil from Saudi Arabia (and later the OPEC cartel). Henry Kissinger, Secretary of State, was the negotiator for this dollar/oil cartel agreement. This agreement gave our fiat (valueless) dollar the illusion of having ‘value’ in the minds of foreigners. The rhetoric from American politicians was that our valueless fiat dollar was backed by oil (really a complete illusion but it never-the-less worked). A deceptive America forced the world community to buy into their mental abstraction currency (now called a fiat dollar which was technically ‘valueless’). Deception can work for a time period!
9. Why are foreigners now desiring to abandon our fiat (valueless) dollar which provided America with a favored status since 1971? Answer: Foreigners are now recognizing that America (4% of the world’s population) has been consuming some 20-30% of the world’s resources due to their favored status…provided by our illusionary dollar (also called the Reserve Currency for the World). This unfairness (weighted towards America and their consumers) is now being recognized as totally unbalanced for our globalized world where resources need to be shared more equitably. Why should America have this favored status…and control over the entire planet (economically) in this new interconnected world of cyber currencies and globalization? Also, energy (oil) is now changing ownership and foreigners would like oil and other key resources to be priced in alternative currencies (including gold) so that fairness is restored within the international currency exchange system. Do you blame them?
10. Will America give up its favored status and its favored claim on the planet’s resources going forward? Answer: Probably not without a military fight! America is now so spoiled (given their favored economic status for the past 43 years) that they may desire to use their Super Power Status to hold onto this favored (economic exceptionalism) status using their philosophy of MIGHT makes RIGHT (their military prowess) to bomb and kill all those who desire to change the System. Human Nature tends to be self-centered and prideful when it comes to changing habits which have seemed so special for so many years. Politicians, also have a hard time giving up privileges which they assume as a given for a Super Power Nation. Would you think differently?
The above questions may help readers of Kingdom Economics to understand how our system has evolved and changed since going off the gold standard in 1971. Will Americans desire to understand this history? Will Americans desire to give up their favored economic status going forward? These are the big questions which everyone needs to think about. My sense is that most Americans will desire a meaningful change once they fully understand this history and the unfairness of the current economic model of debt, deficits, and currencies which have become illusions of the mind. Think about the above questions and the answers which follow. Do you desire to create a New System? I am: http://kingdomecon.wordpress.com
Economic justice demands that ‘value’ be given for ‘value’. America has not done this since the closing of the Gold Window on August 15, 1971. America has traded for some $22 trillion of goods and services where ‘value’ was not given (add up our trade deficits since 1971). This injustice must now be realized and America must now give an equivalent return (in terms of labor and barter) to all our trading partners who have not received ‘value’ for ‘value’. In fact, America (if they desire to be fair) should give double back in terms of ‘value’ for all the wealth that we have unfairly taken from the world community (unjustly and deceptively). Justice demands that we do this! And we must do this (not in our ‘funny money’ dollar…now a cyber nothing) but in terms of real physical wealth and/or services which our counterparties accept. We can start with China as they have accumulated most of our ‘funny money’ and given us real physical wealth from the labor of their citizens. Go into Wal-Mart to witness all the products provided to American consumers by our Chinese friends!
Wal-mart stores are loaded with products from China. What is America giving in return? Do we give ‘value’ for ‘value’? Are you aware that we now create our trading dollar by ‘typing’ numbers into cyberspace?
In the very near future we need to think about our past economic/monetary behavior and recognize that we have not been just and fair with our counterparties. Funny money (our fiat paper units and our current cyber dollars) are not WEALTH. This unit of nothing can not qualify as a stable currency (as it is not backed by any real ‘value’). America now merely ‘types’ numbers into the computer screen and assumes that this ‘funny money’ can be used as an equivalent ‘value’ to what we receive in real physical products (goods) from foreigners. This is unjust and we should all recognize that America must now pay REPARATIONS (using real products and our physical labor) to the world community (especially China, Japan, Germany, South Korea, Saudi Arabia, and all those who have a trade surplus with America). This trade surplus is now measured with a ‘valueless’ cyber currency which will soon crash and burn. America has been the BANKER for the world as our currency is the RESERVE CURRENCY for most trade settlements.
Since abandoning the Gold Exchange Agreement in 1971, America has consumed much more than it has given to others! Our ‘funny money’ dollar has acted as our proxy for ‘value’…but what is a ‘dollar’ when it is perceived to be ‘valueless’?
America, if just and fair, must now think in terms of paying back all the WEALTH unfairly consumed from the labor and resources of our counterparties. The economic world works in terms of ‘value’ for ‘value’. This has been Capitalism from day one. The bottom line is our measure of ‘value’ for the ‘value’ from our counterparty. Money works as this proxy for ‘value’ when the currency unit is backed by some THING (perceived to have ‘value’). The THING which the world community has viewed as a THING of ‘value’ when a barter item was not exchanged is GOLD. America started with some 740 million ounces of GOLD (backing our dollar) in 1944-46. Today, all our GOLD is gone (sold, exchanged, or leased into the markets). We now trade with our ‘funny money’ dollar which we TYPE into cyberspace (our computers) and send via pulses of light to our counterparties. These accumulations of virtual ‘numbers can not be viewed as a THING of ‘value’. They are imaginary and NOTHING! Will America recognize this injustice? Will America deal with our counterparties fairly going forward? This is the ISSUE!
Economic JUSTICE now demands that America think in terms of paying ‘reparations’ to those who did not receive ‘value’ for ‘value’ since we abandoned the Gold Exchange Standard on August 15, 1971. Today’s cyber dollar payments (created by our Fed out-of-nothing) compounds the injustice for Americans when it comes to ‘value’ for ‘value’ exchanges with our foreign counterparties!
Anyone with any type of mathematical understanding recognizes that our current economic system is unsound and about to CRASH. The accumulation of DEBT has reached levels which can not be sustained or justified. All of America’s DEBT represents accumulations of WEALTH which has already been consumed. We can not repay our debtors with additional debt that has zero ‘value’ and expect that this is fair for our counterparties. Our military ‘might’ creates FEAR in the mind’s of many counterparties, but this philosophy of Might makes Right can not continue much longer. Deception, fear, and intimidation by American policymakers has reached its threshold level. Go look at our continuing TRADE DEFICITS since 1971 and think for yourself. Can this Ponzi scheme continue with no repercussions or consequences? I don’t think so! Get ready for some repayment (reparations) to those who deserve ‘value’ for ‘value’. I am: http://kingdomecon.wordpress.com
Today, we have a new cyberspace monetary system which allows for more creativity and flexibility going forward. For example: it is now possible to DELETE all our cyber debt (all the trillions Nationally and Globally) which is stored within our computer screens as virtual numbers. Our monetary unit today is an imaginary digit which gets ‘typed’ into cyberspace and then gets displayed within our computer screens. This means that all DEBT and all Cyber accounts can be DELETED and/or partially deleted at the will of our banking authorities. All our Banks are now storing DEBT of all types (mortgage, personal, business, consumer, student, and public) within their computer screens (called cyberspace). This type of debt can be DELETED at will by our banking authorities. Are you aware of this reality? What we need to understand is that all our so-called ‘money’ today is artificial/imaginary/virtual/digital…and within CYBERSPACE. A deletion or partial deletion can be accomplished simply by pushing the DELETE button on the computer keyboard…which stores this virtual debt. Why not start this deletion process NOW?
Our DEBT no longer consists of paper notes. Today our DEBT is stored within cyberspace as imaginary numbers. This allows for complete DELETION of all these ‘numbers’! Our banking authorities can press the DELETE key on their computer and all the numbers vanish into-thin-air! Wouldn’t this work? Let’s think creatively!
If we look at some of our National Debt Accounts, we can discern that these virtual numbers (see: http://www.usdebtclock.org) can not be repaid by the American people. Our National Debt is currently $17.7 trillion and growing by the millisecond. Total U.S. Debt, which includes personal, business, household, local, and financial institutions is $61.5 trillion and growing by the millisecond. U.S. unfunded liabilities are currently some $117.8 trillion and growing by the millisecond. All this DEBT is unpayable and everyone knows this. So what can we do? One option is to recognize that all this DEBT is really ‘virtual’ debt within cyberspace. This means that it can be DELETED with the punch of a computer key. This debt is imaginary and is bogging down our entire National economy. Why not start a DELETION of this debt starting with all the mortgage debt and credit card debt. This action would immediately free-up millions of Americans to contribute positively to our economy going forward!
Why not start a DEBT jubilee now! Start with mortgage and credit card DEBT! Who does not agree?
The National Debt is partially owed to foreigners so we would need to get agreement prior to DELETION of these numbers from cyberspace. Since most of our foreign debt is owed to just a few countries (China, Japan, Germany, etc.) we could arrange a barter of services and agricultural products for these trade deficits (now in the trillions). We could ask China, for example, what we might barter for the $3 trillion virtual cyber dollars which they store in their computer screens. I would suggest that we might barter technology services, educational services, cultural services, some grain and food items, some out-dated military equipment, and some space technology (equipment and services). We could get an agreement for the $3 trillion and then work on Japan, Germany, Europe, Saudi Arabia, etc.
Trade DEBTS could be negotiated as barter transactions. America has a huge advantage in the technology sectors, the knowledge sectors, and the agricultural sectors. Let’s barter to eliminate ALL our trade deficits and foreign DEBT. Why not? Let’s think creatively now rather than wait for the coming CRASH!
What we need today, is to recognize that all Nations have serious DEBT and DEFICIT issues which can not be resolved via more of the same thinking. We now need to think anew and then work gradually to eliminate all economies from all the past unpayable DEBT. We could start a DEBT JUBILEE program which starts small and then increases over time. The goal would be to eliminate ALL debt from the entire planet (over a few years time). Now that our so-called money is metaphysical/virtual/imaginary we could start this process of debt elimination immediately. The operation of DELETION is a simple concept as all we need to do is press computer keys (called DELETE). What happens is all the numbers vanish into-thin-air (similar to how they are now being created). The entire monetary system is now within CYBERSPACE (a metaphysical space which is within our extended consciousness). Think about this SOLUTION going forward! We can start TODAY! Enjoy! I am: http://kingdomecon.wordpress.com
America and the West (including their proxies within the Middle East) now desire to ‘bomb’ the Islamic State into non-existence and/or containment. Why is this a fruitless endeavor which will only make the problem much worse. The first concept we need to understand is that ‘ideas’ are not eliminated via bombs, rockets, missiles, drones, or gun powder. Ideas are metaphysical phenomena and after all the bombs have stopped dropping, the ideology of ISIS and also those dropping the bombs is unchanged. An ideology like that of ISIS (also called the Islamic State or the coming Caliphate) is not affected by explosives and other military equipment. What we need to understand is that an ‘ideology’ is metaphysical (spiritual) and the elimination of flesh and blood bodies does not get to the core or cause of an ideology. America, NATO, Europe, and the Obama administration are barking up an invisible/non-physical tree and their ‘bark’ will have no real effect upon the Cause (of the problem)! What is the core ideology of ISIS? Let’s review!
All the ‘green’ area could be viewed as a potential Islamic State with a Caliphate in control of the people!
The beliefs of Abu Bakr al-Baghdadi, the self-anointed Caliph of ISIS, who claims to be a descendant of Muhammad…has a belief system where his God, Allah, is his Source or Logos. What Abu Bakr desires is a theocracy for all his Muslim brethren and eventually for the entire planet. The Kingdom of Allah (the Creator) is the goal and destiny of all those who follow the beliefs of this Islamic State version of reality (religious dogma). Once a Caliphate is established, then Abu Bakr and his clan of Imams will desire to establish a set of rules for his society to follow and adhere to (called Sharia Law). All this derives from the Islamic Koran and their scripture (believed to be a direct command from their God, Allah/Creator). This mindset of Abu Bakr (a belief within greater Islam) is a control/rulership mindset which is derived (according to this leader) from a higher God or Source called Allah (planet Earth’s Creator)! So who is this God, Allah? Why is Abu Bakr desiring this Caliphate for Iraq and eventually the entire planet? Why this mindset and where does it lead?
The mindset of ISIS is a Caliphate with control of the people via Sharia Law! Abu Bakr thinks this is his ‘calling’ from a Higher Authority (called Allah)!
The self-anointed Caliph or leader (speaking for Allah) is Abu Bakr al-Baghdadi! Abu believes that he is a direct descendant of Muhammad and that Allah has chosen him for his destiny! This is his mindset or Worldview!
According to Islamic history and belief, Allah (also called planet Earth’s Creator within Islam) is the same God as that worshipped by Elijah of 1 kings 18 and 19 (according to Islam). Elijah was an Israelite (and a prophet of Israel) who followed the beliefs of the person called Abraham…who believed in a God named, Yahweh. Arabs call their God, Allah (the Creator God)…however, this God could also be called Yahweh (the ‘name’ chosen by those described as the descendants of Isaac/Jacob). So, Allah and/or Yahweh, could also be called the God of the Old Testament and the God which ‘called’ the person we think of as Abraham. Allah and Yahweh are, essentially, the same God or Logos (according to the beliefs of Islam). Who discerns this reality. Names for God (like Allah) change from culture to culture, yet the assumed Source referred to, is identical to the God of Israel (called Yahweh)! Christians call this Source the first person of their Trinity (generally called Father or God the Father)! It’s important that we understand the mindset of those who we view as enemies! Let’s continue!
The God of Islam has the ‘name’ ALLAH! Abraham called his God YHWH! Christians call their Leader/God Jesus or Yeshua! According to Islam and Judaism…Jesus/Yeshua was/is not the Creator God…(merely a prophet within Islam and a false messiah within Judaism)! Christians, however, view Jesus (Yeshua in Aramaic) as their God (part of a Trinity of persons)! Notice the different Worldviews within each religion!
Abu Bakr thinks that his God (Allah) has chosen him to set up an Islamic State. That, to me, is the core doctrine of al-Baghdadi and his clan (which the media calls IS, ISIL, ISIS, or the Islamic State). The word, Allah (Islam’s concept of Creator God), is merely the Arabic ‘name’ for God! Abu Bakr thinks of himself as the chosen of Allah and also as a descendant of the prophet Muhammad (according to what has emerged within the public media). Beliefs are powerful and these beliefs induce a person to act (within realtime). This also goes for those with contrarian beliefs. We all have specific beliefs (about the nature of reality) and those in authority/leadership desire that their beliefs become universalized. Scientists believe that their beliefs are absolute (universal) for everyone. Evangelical Christians believe that their beliefs are universal for everyone. Atheists believe that their beliefs are universal for everyone. Catholics believe that their doctrines are universal for everyone! Islam has a similar view of reality. Many philosophers call this one’s Worldview! Playing God (by human rulers/leaders) seems ubiquitous globally!
Worldview manipulation is prevalent within religions/cults/science/secular education/strong men/governmental administrations/economics/ philosophy/and human nature! What is your Worldview?
All leaders (religious and secular) desire a type of ‘political correctness’ for their community/society. Anyone who does not conform to the beliefs of the ruling STATE must eventually be eliminated or marginalized. This is the mode of operation of ALL rulers and governmental administrations (throughout history). The STATE must come first when ‘push comes to shove’. Political correctness must be imposed and forced upon everyone to the degree necessary. Some Nation States (and cultures) do allow a greater allowance for alternative viewpoints when economic conditions are favorable and everyone is essentially cooperating with the basic Laws, Rules, and Regulations. When an economy turns down, however, a community/society will often disregard the laws, rules, and regulations in order to survive. This then leads to a situation where the STATE must impose their mandates via FORCE (police/military/guns)! The central STATE will use GUNS to eliminate those who refuse to bow to the State (when push comes to shove)! We see this now in Iraq, Libya, Syria, Israel, Egypt,Thailand, Sudan, Mali, Ukraine, and numerous other small States throughout our planet! Each State desires to maintain Rulership via a philosophy of Might makes Right!
Laws, Rules, Edicts, Executive Orders, Marshall Law, Political Correctness, are ALL forms of mind control over the people’s freedom! Ultimate freedom is not possible under any form of centralized control system! Control and freedom are mutually exclusive concepts! We live in a World where Rulers impose their ‘control’ over their community! Control must be inforced for a State to survive!
America is no different from ISIS when it comes to the concepts of desiring CONTROL and POLITICAL CORRECTNESS. Naturally, I view the beliefs of America as much superior (as of today) to that of Abu Bakr al-Baghdadi (and his philosophy of ‘death’ to everyone who disagrees with his version of Islam), but when ‘push comes to shove’ our American government will use their security forces (Homeland Security, Military, Marshall Law, Executive Orders, Guns, Etc.) to assure that their STATE survives during a period of economic chaos! We witness this now (to a degree) in Missouri and we also witness this mindset over in Iraq and the Middle East. The American administration views ISIS as a threat to American values and beliefs…and their current strategy for dealing with this threat is to ‘kill’ the command center of ISIS and then the key leaders who represent this clan of believers. Is this a meaningful and winning strategy given today’s global internet society? Personally, I don’t think so! An ‘ideology’ (metaphysical in nature) can not be eliminated via killing the body. Anyone who survives (after the bombs finish) will continue to have their BELIEFS (usually contrary to the bombing entity)! Violence tends to beget violence! Did WW I end violence? Did WW II end violence?
Bombs beget more bombs. WW I and WW II did not end the bombing, missiles, killing? Some 60 million killed in these two wars! What is now emerging appears to be WW III in the making. Human nature does not seem to change!
The only solution for ideological issues is a public challenge system for ‘Truth’ (and this would need to be a continuing process for years). Truth eventually changes minds and beliefs. Truth, however, is always relative on planet Earth. The ‘Truth’ will eventually set us Free (not bombs, missiles, drones, and religious/scientific/secular doctrines). That would be my perspective! Think for yourself and seek ‘Truth’ (recognizing that all ‘Truth’ is relative here on planet Earth)! As human beings we are all intellectually ‘flawed’ to some degree. This means that we can not discover ULTIMATE TRUTH (via our own efforts or teaching). We would need some ABSOLUTE SOURCE OF TRUTH to be IMPOSED on everyone (and everywhere) for TRUTH to be absolute and universal. Flawed human beings could not discern this ABSOLUTE TRUTH or administer this ABSOLUTE TRUTH via their own intellect. Relative ‘truth’ appears to be the only salvation for mankind! What do you think? I am: http://kingdomecon.wordpress.com
Today, we can think about the major change which took place on August 15, 1971 (43 years prior to today). This date will go down in history as the Nixon Shock and also the day when phantom trading started to emerge. What happened on 8/15/71 which was so significant? This was the date when our then President, Richard Milhous Nixon, chose to stop all foreigners from exchanging their paper dollars for our gold supply at Ft. Knox. Nixon became aware that our gold supply had declined from some 740 million ounces in 1944 to some 272 million ounces on 8/15/71. The run on our gold (allowed by the Bretton Woods Monetary Agreement) was continuing and if Nixon did not close this ‘gold window’, ALL our gold would be gone and our dollar would be exposed as ‘valueless’ (in the eyes of foreign holders). After talking this situation over with his Treasury Secretary, John Connelly, and also the famed economist, Milton Friedman…Nixon chose to take the chance of closing all further exchanges of dollars for gold. Think about this decision! Why was it so significant? What has this decision led to as of 8/15/14?
The closing of the gold window revealed that our American dollar (now unbacked and without any substance) was a phantom unit (without ‘value’) and this gradually has led to our current cyberspace dollar (digital in nature) which now is totally a phantom unit (created out of nothing). Today, there is no location or substance to this phantom unit that we call the American dollar. This unit can not be found, located, or discovered anyplace within our greater material universe. This unit (called money by many) is now a unit of CONSCIOUSNESS…and is an inner unit within our mind. This means that our entire financial system is now subjective and a phantom within our imagination. Who can locate any of their dollars today within our greater material universe? The reality is that we now live with phantom ‘values’, phantom trading, phantom web-based transactions, and a phantom financial system globally. Those who understand cyberspace and their own inner consciousness will discern this reality. Others must live with deception and illusion until a NEW AWARENESS emerges!
All currencies are now located in a metaphysical space called CYBERSPACE. This space is not within our material/observable Universe! Are you aware of this? Welcome to a new world of INNER space called our CONSCIOUSNESS and extended consciousness!
The decision of Richard Milhous Nixon was historic as it changed the psychology of all currencies. We all used to THINK of money as physical and related to gold. After this decision of 8/15/71, we thought of our ‘dollar’ as a paper note or instrument. Today, we need to think of our ‘dollar’ as a phantom unit within cyberspace (our extended consciousness). Practically all our forex, equity, bond, stock, and derivative trading today involves trading phantom concepts within cyberspace. All the ETF’s, derivatives, financial indices, and all the forex currencies are now phantom units (with no substance or objective reality)! What a change from 1971 and prior!
Cyberspace is an INNER space and few can discern this reality!
Today, we receive no physical paper when trading and all our conscious transactions are now nearly 100% virtual and within cyberspace. Who understands? Those who understand material reality and our observable universe should be able to discern this phantom nature of all our markets today. My challenge to anyone and everyone is to try locate, find, or discover our American dollar (or any other global cyber currency) within our material/observable universe. We all now live within an INNER metaphysical universe when it comes to finance, trading, and investing. Enjoy this inner experience while you can! This inner experience is totally subjective and likely to change dramatically as emotions/confidence/awareness changes. Watch the cyber markets for evidence on when the coming change in our illusionary markets takes place. I sense that a change could be rather SOON! I am: http://kingdomecon.wordpress.com
The two most influential schools of business and economics in the world (since 1913) are the Wharton Business School, in Pennsylvania and M.I.T. in Massachusetts. Check out their websites for details and then make your own assessment. Some of the notables who have attended and/or graduated from these institutions of higher learning are: Warren Buffett, Donald Trump, Ben Bernanke, Benjamin Netanyahu, Mario Draghi, Larry Summers, and Paul Krugman (to name just a few). The influence of these institutions on finance and economics extends to all corners of our planet and to most business organizations operating today. Think of JP Morgan Chase, Black Rock, PayPal, Visa, Deutsch Bank, Morgan Stanley, Raytheon, and our current Federal Reserve System. The mindset of most Keynesians and their models for finance/economics starts with these two institutions (mostly). Naturally, the London School of Economics has also played a huge role within global economic thinking. What these schools (among others) now need to focus upon is more than econometrics and computer driven derivative instruments and models. Teachers now need to understand the difference between a ‘currency’ and ‘money’. But will they listen to alternative views on these issues? Will these professionals (the elite within business and academia) have a desire to update their thinking going forward on issues of finance and economics? Do first principles play a role in understanding what is happening today in our markets? Personally, I think so!
If we think about the history of ‘money’ we can discern that this word/name has been used to refer to physical items/commodities which were perceived to contain ‘value’ by marketplace participants. The first item of ‘value’ was probably a food item(s). Later the market chose items like cowry shells, wampum, tobacco, copper, silver, and gold as proxies for the concept we call ‘value’. All these items and many others were perceived to contain ‘value in exchange’ when persons, groups, and nations desired fairness and price stability in the greater marketplace. Accounting and bookkeeping systems emerged later…as items of ‘value’ were selected for marketplace transactions. Then to extend and improve ‘calculations’ of value within the marketplace, a currency was invented to increase the number of transactions and improve the accuracy and objectiveness in calculating (measuring) this concept that we all call ‘value’. Our currency, called the American dollar, emerged with the Coinage Act of 1792. But what is a ‘dollar’ if it is not defined/referenced to something of value and related to the ‘money’ item chosen by the marketplace? Think! What is a ‘dollar’ today? Can anyone find or discover this unit within our observable material universe? Try to find it!
The philosopher and mind behind our historical American dollar was Thomas Jefferson (with input also from Alexander Hamilton). These two founding fathers of our money/currency recognized that a word/name like ‘dollar’ had no meaning or significance if this word/name was not ‘defined’ specifically. What is a WORD and NAME (including symbols like $1.00) if they are not defined and specified? How would these ‘units of consciousness’ become OBJECTIVE within the marketplace if they are not defined in terms of a MONEY item? What Jefferson and Hamilton concluded is that the word/name ‘dollar’ needed to be defined specifically. They then proceeded to assay the money item which most Americans preferred for their ‘value exchanges’ (the Spanish Silver Coin which contained precisely 371.25 grains of pure silver within the coin). Jefferson then chose this ‘definition’ for our American dollar. This definition was presented to our Congress and the result was the Coinage Act of 1792 and then the American Mint in Philadelphia. Our Constitution also specified that our Congress be responsible for ‘coining our MONEY and regulating the value thereof” (including fixing the standard of weights and measures). The concept that we call ‘value’ has zero meaning (objectively) if our currency unit is not defined precisely. This concept (value) is totally a subjective ‘unit of consciousness’ and impossible to derive objectively if our currency unit is not defined in terms of some physical MONEY item (chosen by the marketplace). Think about these concepts of finance/economics/philosophy!
Today’s subjective currency units (globally) are totally meaningless and without any objective reality. What is a ‘dollar’, ‘yen’, ‘pound’, ‘euro’, etc. without any definition (reference point to material reality)? What is the meaning of a ‘dollar’ when our Fed merely CREATES this unit by ‘typing’ numbers into the computer screen? Are you aware that ‘typing’ numbers into the computer screen is a subjective operation? What did our esteemed Fed Chairman, Ben Shalom Bernanke, start with his QE operations after the financial crisis of 2008? What is Janet Yellen and her staff doing today to increase the Fed Balance Sheet? Are these accounting units (called dollars) capable to creating stable prices and objective calculations of value for all our goods/services (assets and collateral)? Think about what is now transpiring at all the Central Banks on this planet! Are any of these QE operations (or similar manipulations) leading to stable prices, market confidence, and a growing/prosperous economy? Think about what is now happening within our global interconnected (web-based) markets? Can a ‘cyberspace’ dollar (typed into the computer screen) work to create stable ‘prices’ and ‘values’? What we now need to understand is the DIFFERENCE between a ‘currency’ and ‘MONEY’. These historical word/names (and the currency symbols now in cyberspace) do not mean the same. When a currency is divorced from a MONEY commodity the result is subjectivity! Think and talk to your students for some feedback. Enjoy this day! I am: http://kingdomecon.wordpress.com
To understand why our ‘prices’ are artificial and subject to deletion (going to zero) we need to understand the nature of our pricing unit (called the dollar). What is our ‘dollar’ in reality? Does anyone understand? Most will recognize that we have a digital dollar today. But what is a digital dollar? What we need to understand is that a digital dollar is also a unit within cyberspace. This means that a digital dollar is also a cyber dollar. A cyber dollar is also a unit of information; a unit of consciousness; a mental abstraction; a metaphysical unit; and a unit of nothing (substance wise). This means that all our so-called units of currency (dollars) can be DELETED from our computers with a decision to delete (by our Central Bank Authorities). Today, all ‘prices’ are expressed with our digital/cyber/information dollar. When you check on a ‘price’ (say the price of a one ounce gold coin) you need to go to your computer and check the price within cyberspace. This ‘price’ (currently $1308/ounce) changes from millisecond to millisecond as today’s ‘prices’ are continually manipulated/changed via trading strategies using our computer driven machines. Take the time to visit this website right now: www.24hgold.com Notice the chart at the top of the website with the words: GOLD. Notice how the ‘price’ of this commodity (expressed in cyber dollars) changes from moment to moment during the trading day. Why?
What we need to understand is that ALL our ‘prices’ today (house prices, car prices, silver prices, gold prices, food prices, etc., etc.) are now expressed in a digital/cyber/informational DOLLAR. This ‘dollar’ is not a physical unit which we can hold in our hand. It is not a physical unit which we can discover within our observable universe (that which science observes and studies). If you try to ‘find’ or ‘discover’ this unit of cyberspace, you will discover that it is a unit of nothing/no substance/no physical matter/merely a mental abstraction (within your consciousness) and displayed within your computer screen. I call this unit of nothing our Meta-physical Dollar. You could also call it a Spiritual Dollar. This unit can be DELETED/banished/removed by our originators of this unit (called our Federal Reserve System). All our dollars today (with the exception of a few paper dollars) are now cyber dollars and subject to CREATION and DELETION via a decision within our Central Banking System. This means that a complete DELETION of this unit from the central computers at the Fed could set in motion a total DELETION of all these cyber dollars from existence! Can you understand this reality? Our dollar (called legal tender) is really a unit of nothing, derived from nothing (the consciousness of the Fed administrators), and this unit can be DELETED from our cyberspace reality. Can you discern this REALITY!
In reality, cyberspace is the same as a VIRTUAL environment. So if we desire we could call today’s dollar a VIRTUAL unit. All information within cyberspace is also virtual information and can be eliminated from all computers and also from our consciousness (extended cyberspace). Few financial pundits understand what our Fed has concocted with their so-called INDEPENDENCE from Constitutional Authority. Our Constitution spells out in Article I, Section 8 and 10, that our dollar is supposed to be a physical item (a metal coin/composed of silver and/or gold). Congress is supposed to ‘coin’ money and regulate the ‘value’ thereof. This authority was (in my view) unconstitutionally changed when the Federal Reserve Act was secretly created during the time period of 1910 to 1913. It was the night before Christmas Eve (12/23/13) when our Congress manipulated a bill/legislation which led to the creation of what we call the Federal Reserve Act of 1913. This Act has been controlling and manipulating our money/currency for over 100 years. Our secret Fed (who knows what they are doing behind the scenes) is legally an INDEPENDENT entity with no operational oversight (in realtime) by any of our elected representatives. A few elite policy-makers (I call them financial manipulators) create cyber dollars (from their consciousness) and then they select special recipients who will receive these units of nothing (virtual digits) for additional price and value manipulations within the greater global markets. Who understands? What we call ASSET PURCHASES via Fed Speak and/or Q.E. (quantitative easing by the media) is an example of what is occurring.
Since all our units of currency are now cyber units (within our computer screen) it is feasible/possible/probable that all these units of nothing will eventually be fully DELETED from all the computers/cyberspace servers in which they now reside. When this event occurs, all prices (expressed in these cyber units will go to ZERO}. Think about this reality! Prices (in dollars) can and will eventually go to ZERO! Your house/car/food/clothing/silver/gold/diamonds will all go to ZERO (in terms of dollar ‘price’)! Can you imagine this coming DAY OF REALITY? We all will wake-up one morning and discover that there is NO ‘dollar’ for any monetary transactions! The cyber dollar has been DELETED from all cyberspace servers. Nothing becomes Nothing! A mental abstraction becomes merely a unit within our imagination (our mind). Can you discern what I am writing/saying? Dollar ‘prices’ will eventually GO TO ZERO and our DOLLAR will become an imaginary unit (a memory within our MIND)! Think about the ‘nature’ of this pricing unit that we call our ‘dollar’. It is merely a symbol and a number ($1.00) within CYBERSPACE! Who understands! Think about this coming reality! The coming market crash may help to wake-up a few who are currently SLEEPING! Get ready for barter/voluntary exchanges/welfare from your neighbors storage bin and similar bartering events. The entire HOUSE OF CARDS (all our global cyber currencies) are destined for complete DELETION/BANISHMENT/DISAPPEARANCE (in the very near future)! Enjoy your cyber money while you can! Our authorities may attempt to create a New digital Dollar when the N.W.O. is installed! A better day is coming (that’s my hope)! Now is the time to learn and think so you can help others learn and think! Enjoy! I am: HTTP://KINGDOMECON.WORDPRESS.COM